Question for the Money Doctors

Question

I have a whole life insurance policy with approx $130,000 death benefit.

Currently it has a $45,000 cash value and monthly payments of $78/month.

I am 64 years old, consider myself in good health, and I''m trying to determine if I should cash it or continue to pay.

What factors should I look at?

Answer

Do you have any dependents or any life insurance needs? Is there anyone relying on you and your current income? If you don''t have any life insurance needs, there is nothing wrong with terminating this policy and taking the cash value. However, you''ll need to check with the insurance company to see how much of the cash value is taxable.

Your premiums are pretty low. It sounds like you had this policy for a very long time. If you want to keep the insurance policy as permanent insurance, you can check with the insurance company to see if it is paid up. This means you can stop paying premiums and the insurance policy can continue to stay in force.